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A permanent cut in VAT for rural tourism businesses would boost the national economy, says the Country Land and Business Association.

A permanent cut in VAT for rural tourism businesses would boost the national economy, says the Country Land and Business Association.

Spending on domestic tourism is estimated to have fallen by more than £50bn over the past year – with rural tourism operators taking the major brunt. In a bid to boost the sector, the government slashed VAT from 20% to 5% for tourism businesses.

Support

Analysis by the CLA has found that retaining the VAT cut for rural tourism enterprises with a turnover of up to £500,000 would help businesses and consumers – adding £4.5bn to the economy over a 10-year period.

CLA president Mark Bridgeman: “With the tightening of restrictions over the Christmas period and the national lockdown looking to continue through the February half-term, many holidays have been cancelled, resulting in a loss of business for many.

“We must do what we can to support small businesses during this time, and the VAT reduction provides a solution that will benefit everyone involved, from rural tourism businesses to those in their supply chain, and ultimately the Treasury.”